As expected, MIVA rejected the first offer made by blinkx last week. The reason given is pretty straightforward and the MIVA people weren’t shy on expressing themselves: the offer is too low. Mind you, there was no reference from the Board of Directors if the company is, indeed, for sale: that was understood. It is, but for the right price.
“After careful evaluation, the MIVA Board believes that blinkx’s proposal significantly undervalues MIVA’s assets, including our technology, brand recognition and network,” said Larry Weber, MIVA’s Chairman of the Board. “We don’t believe that the proposal, as currently constituted, is in the best interests of our shareholders. The Board of Directors continues to evaluate all of MIVA’s strategic options in the context of our industry and the broader business environment and remains committed to evaluating and considering offers that maximize shareholder value.”
The investment bank Petsky Prunier is acting as financial advisors and Baker & McKenzie LLP is acting as legal advisors to MIVA in this process.
What is not being said is how, who and what prompted blinkx to make an unsolicited offer to MIVA, a move that appears to be somewhat out of the blue since many industry voices gossip that blinkx itself is looking for a buyer or at least to lock down some long term monetizing partnerships.
We will, most likely, assist to yet another endless negotiation extravaganza – maybe not the size of the Yahoo – Microsoft one but probably not too far off given blinkx’s market size.
About MIVA, Inc.
MIVA, Inc. (MIVA) is a global digital media company with a mission to deliver valuable digital audiences to advertisers. MIVA has two focuses to its business: owning and operating a growing portfolio of consumer destination sites and interest-specific toolbars, through its MIVA Direct division; and running a third-party contextual Pay-Per-Click ad network focused on key vertical sectors, through its MIVA Media division. MIVA, Inc. operates across North America and Europe.